Key Person Cover

Key Person Cover pays for the cost of replacing a key member of staff for up to 12 months if they are unable to work due to illness or injury; so the business can put measures in place to keep everything running.

This benefit is suitable for small to medium size businesses and partnerships. In a small business, one or two people may be key revenue generators. The survival of that business may be at stake if they are unable to work and hence generate revenue.

Key Person Cover gives the business time to recover and/or put in place appropriate measures to keep it running. The business can use the benefit in any way it chooses.

Ages

• Entry age is from age 16 to age 59.
• This cover ceases at age 65.

Premiums

• Payable fortnightly, monthly, quarterly, half-yearly or yearly
• Yearly renewable premiums are fixed for one year at a time and will normally increase in line with age.

Cover

• The maximum monthly benefit is $25,000, subject to financial and medical assessment.
• This is an ‘agreed benefit’ contract. No financial evidence is needed at claim time.
• Waiting periods of 2 weeks, 4 weeks, 8 weeks, 13 weeks, 26 weeks, 52 weeks or 104 weeks.
• 12 months benefit payment period.
• Available to occupation classes 1,2 and 3.
• A business can insure a number of key people in the same business.
• Cover ends if the life assured ceases to be employed in the business.

Total disability benefit

Once on claim and the waiting period has expired, the ‘agreed monthly benefit’ is payable monthly in advance for up to 12 months to the business.

Partial disability benefit

Following a period of total disability and a subsequent return to work in a reduced capacity, a partial benefit may be payable.

Recurring claim benefit

If the insured person suffers a relapse within 12 months of returning to work Fidelity Life will waive the waiting period.

Benefit period reset

If we have paid you a claim and you suffer from the same or a related injury or sickness after returning to full time paid work for at least 12 continuous months and you become disabled or partially disabled, the benefit period and waiting period will start again

Waiver of waiting period

The waiting period of a new unrelated claim is waived in certain circumstances.

Waiver of Premium Cover

While a disability or partial disability benefit claim is being paid for an insured person with the waiver of premium cover, the premiums due on the policy after the waiting period ends will be waived and premiums due and paid during the wait period will be refunded. This option requires payment of an additional premium.

Inflation protection

The business can choose to have the cover increase – to a maximum of $25,000 per month – by the greater of 2% or with the Consumer Price Index, regardless of health, to ensure the benefit keeps pace with inflation. We will advise the level of indexation and the new premium each year.